Morgan Stanley under its new chief executive John Mack and head of brokerage unit James Gorman is beginning to grow its private client busin...

Morgan Stanley under its new chief executive John Mack and head of brokerage unit James Gorman is beginning to grow its private client business, according to a Reuters report. Millionaires at the Wall Street firm’s brokerage unit now comprise 60 per cent of client assets, up from 50 per cent a year ago. The report quoted recent data which showed accounts with more than $10 million in assets rose 14 per cent in the third quarter of 2005 from a year ago and clients with $1 million to $10 million portfolios rose 16 per cent, while customers with less than $100,000 fell 18 per cent. Growth in more lucrative customers, along with recently firing more than 1,000 unproductive brokers, helped boost revenue per broker 22 percent to $508,000, said Reuters. The report also said Morgan Stanley wants to more than double its ranks of high net worth advisors to over 2,000 in the next few years.